Financial Technology or Fintech is having a major impact on the world right now. These are the companies directly competing with the traditional financial service providers trying to come up with more efficient, faster, and more transparent services all
across the globe.
Japan is the third-largest economy in the whole wide world. Tokyo being the metropolitan region generates around 20% of the whole of
Japan’s GDP, making it the top 20 national economies all across the globe. Japan is well ahead of countries like the Netherlands, Switzerland, Taiwan, and Sweden. However, the country
is facing a huge demographic problem at this point and time. The population peaked in 2010 at 128 million people, however, there has been a steady decline since then to 125 million with expectations of worse due to the rapidly aging populace. At the same time,
the country is facing urbanization issues with a lot of smaller cities and villages facing huge depopulation problems with some estimates showing that one in six houses is already emptied out in the rural regions.
The impact of the novel coronavirus pandemic has shown a surge in the currency trading market in Japan as well. This means that those people who are working from home are discovering new ways of making some profit with their investments. The trading volume
in the individual foreign exchange market has jumped from 403 trillion yen to 1,015.6 trillion ($9.4 Trillion) in just 2 months. Fintech companies are at the forefront of blockchain technology and therefore are very much responsible for the support and the
availability of the services for the Japanese people.
Industrialization has hit the world like a truck, however, there are still countries that utilize a lot of cash payments in comparison to others. Japan is coming in a close second in a “competition” with Germany with its utilization of paper-based payments.
The Japanese government decided to work against this tide and promote cashless payments as much as possible. In order to achieve this, they have increased the consumption tax from 8% to 10% on October 1st, 2019. There have been several discount schemes implemented
as well with subsidizations of cashless payment terminals for merchants. In addition, they started providing a 2% to 5% discount for customers when they are making a purchase from the registered SMEs or franchise stores. As a small note, this does not include
national store chains. This was also done in order to get the Japanese hospitality industry ready for the upcoming Olympics, where around 40 million people were expected to visit.
With more than 800,000 active forex accounts, Japan is one of the leading markets in the world making 35% of the whole traded volume around the globe. The size has more than doubled during the last decade. Japanese traders are way different from everyone
outside of the country as they usually trade on the highly volatile and…